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-- mother got this Fox Business -- we're just hours before European leaders meet.
To deal with the debt mess and -- -- French -- about us the head of the Paris based group of economists complaining about our slow economy and it kind of reminded me of this -- number.
These crises was not originated in Europe.
Since you mentioned must America these crises was -- reject it.
Why not every time I hear him I'd -- captains and reference and Larry McDonald who isn't remotely affronts joins me now.
This is this weird here we go again when he made it.
Well couple things the president I think president Obama's extremely concerned about Europe and I think behind the scenes and Washington they know what's the biggest threat.
Above all threats politically is when I does that what are they fear in the months.
There's so much systemic risks building and what are called target to liabilities between.
-- Germany and Spain and Italy as good as consumers by different products the banks have these liabilities to build between them.
It's up to almost a trillion dollars in these target to liabilities.
In essentially what that means is what we see in the US Vietnam and and bank debt.
We see that clock in Times Square building rated and really kind of there are relevant thing towards.
But over the -- the Germans are really really concern that's what this -- -- EU's summits about.
And that's why did not reveal you don't beginnings gonna -- -- -- billion plus the problem they keep kicking the can down the road but.
The bottom line is investors watching us right now want to take something away from the since you and I'll tell you this.
If Spanish yields are above six and a half six and three quarters percent.
It's it's really like a fat person sitting on the market because.
Because -- those liabilities between Germany and the southern countries are growing every day moves -- -- Spanish yields aren't.
-- that they're there right now right exactly so I would so your Barack Obama and you see those Spanish yields not budging -- -- getting higher.
What it's gonna happen.
Well it reminds me so much to talk about this my book the cost of further common sense you've got the systemic risk that we had in the US between the US stakes in 2008.
That's type of systemic -- is now building in Europe between this year thanks himself from the banks in the north.
-- -- knows if they don't take care of this at the EU summit.
It's eventually gonna -- -- -- would be a massive threat to the election so.
In the meantime Larry what they do either in front or behind the scenes is keep pumping cash.
-- you're right -- our Federal Reserve community enrollees sort of you know.
Drone -- views on what's going on secretly.
But we're obviously drawn a lot of money over there and it doesn't appear to be doing any good but maybe staving off.
Something worse happening but only for now so what do you predict.
-- I think that -- I think if investors the bottom line is what I think investors should do is.
Sell the rallies in the market until you see the whites of the eyes of the bazooka when I mean is.
There's five or six things that they can really do over there to put out.
Of this tennis.
Get -- that's going on in until they do that until they bring that -- together that fiscal union.
The market's gonna really have a tough time really rallied substantially.
-- for the president if Europe can hold its act together he's reelected and it can't get.
Oh today -- this if if if this continues to build the way it's building he will not come out of office because.
There -- put that stays the same -- just -- limping along.
From accredited I think that -- -- the best case scenario but it's still 25% of the world's GDP is over their bigger than the United States.
You know where you're scary Smart.
Area so -- there's just throws you.
Bestselling author Larry McDonald he was on the stuff before anyone -- -- -- I was I thought it was a great place to get.
You know -- and -- -- he was telling me you're gonna lose your money hand over fist.